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The ‘Great Resignation’ Continues: Why People Are Choosing New Paths
Social media has become a showcase for job resignations, with testimonials appearing every week that explain the motivations behind each decision. Perhaps what is most surprising are the diverse reactions from followers, ranging from messages of support to congratulations for taking that “step.” Is the “Great Resignation” trend not yet over?
Last January, a report by the World Economic Forum and PwC noted that job resignations had increased by 50% over the past decade.
Furthermore, it projected that over the next five years, the global average job turnover rate would reach 23%. In Latin America alone, the report noted that “nine out of every 10 people who started a new job say they are open to new career opportunities.”
Peru is no exception to the “Great Resignation” trend, which has intensified in the wake of the pandemic. While among young people some of the main reasons for quitting are a lack of alignment with their life purpose or the need to pursue personal projects, among executives over 35, the motivation to “jump ship” lies in the search for new challenges.
According to Paola Chocano, Partner & Managing Director at Cornerstone Peru, "more than 80% of senior executives who decide to resign are looking for new opportunities that allow them to add value and lead
business challenges." The expert explains that one of the main barriers for C-level executives is the lack of opportunities to innovate, the challenges of adopting new business models, the
absence of a modern organizational culture, and mistrust.
"In a country where more than 60% of companies are family-owned, it is crucial that these companies offer opportunities for growth and professional development," she summarizes. She adds that this situation poses significant challenges for companies and Human Resources departments, which must adapt to their employees’ new expectations and motivations to retain talent and foster a satisfying and productive work environment. Otherwise, it could spell the end of long-term careers.
It is worth noting that in recent weeks, for example, Gustavo Delgado-Aparicio announced his resignation as CEO of Banco Pichincha in Peru. Days later, it was confirmed that he will take the helm at Pesquera Diamante. And at the agricultural company Camposol, José Antonio Gómez submitted his resignation after 13 years with the company.
Action Plan
The study "The Great Resignation: Keys to Attracting, Retaining, and Winning the Battle for Talent," prepared by faculty at IESE Business School, also sheds light on this labor phenomenon and the reasons why it has grown over the past two years. According to the study, three conditions have coincided: "first, the realization that life is not eternal and is worth enjoying (a perception sparked by the consequences of the pandemic); second, the entry into the workforce of new generations with different interests than those of previous generations regarding the balance between professional, family, and personal life; and, finally, the increase in unemployment benefits during the COVID-19 pandemic by some governments."
Chocano agrees that senior executives and general managers in Peru are actively seeking environments where there is a balance between personal and professional life. "Executives value flexible schedules more—not necessarily hybrid ones—but ones that allow them space for their private affairs without affecting their high productivity," he notes.
